US Federal Reserve studies Blockchain
The US Federal Reserve studies Blockchain as “this may represent the most significant development in many years in payments, clearing, and settlement.”
According to governor Lael Brainard, in fact, this technology could be very disruptive for the financial system.
During her speech at the Institute of International Finance in Washington, D.C., she explained that the Federal Reserve studies Blockchain to study and test the technology for a next-generation payment and settlement system.
“We are paying close attention to distributed ledger technology, or blockchain, recognizing this may represent the most significant development in many years in payments, clearing, and settlement.”
Brainard’s speech came a week after Janet Yellen commented that the distributed ledger could have a “significant impact” on the fintech industry. Also, she explained that the central bank is “trying to understand digital currencies and other blockchain applications”.
During her speech, Brainard commented on the various use cases of the blockchain in financial field, as well as talked about the potential risks.
“Like many new financial technologies, distributed ledgers could ameliorate or exacerbate traditional financial risks,” she explained.
Federal Reserve studies blockchain: a whitepaper will be published soon
Also, Brainard said that the Federal Reserve will publish a whitepaper on the blockchain by the end of this year.
Furthermore, the central bank will continue to study and discuss the tech with both private and public sector stakeholders.
To read more about Federal Reserve involvment in the fintech field, click here.
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